Disney ex-CEO Michael Eisner has a bleak prediction for the TV broadcast industry. Eisner recently said that major sports league like the NBA and the NFL would eventually leave the broadcast TV in favor of online streaming platforms. This means that major TV channels like ABC, CBS, NBC, and Fox will soon be unable to broadcast some of the country's most watched sports event. It is important to note that ABC is owned by Disney, Eisner's ex-employer.
The advent of the Internet gave birth to some of today's biggest platforms. Apple, Amazon, Facebook, Google, and Netflix have all expanded their platforms to cover several businesses. Facebook, for example, built its empire on social media, and now it has transcended several industries like virtual reality, cryptocurrency, and most crucially streaming.
Several tech companies are already experimenting with live sports streaming. Leading the tech pack in this business model is Amazon, which is paying more than $65 million per year for the right of "Thursday Night Football." Facebook, on the other hand, has streaming rights for several Major League Baseball games. Google's video streaming platform, YouTube also has distribution rights for NBA games in Africa. It also owns the rights to stream some Major League Soccer games.
The sports industry is well-aware of the potential of video streaming. There are several sports leagues that are already working with tech companies to offer interactive sports streaming services.
In an interview with Bloomberg, Eisner said, "With the financial wherewithal of Apple, the aggressiveness of Amazon, the creativity of Netflix, the existence already of ESPN and ESPN+ -- you're going to see a very difficult time ahead of U.S. broadcasters. I wouldn't be surprised if all sports of that level eventually leave broadcast television."
Despite this highly positive outlook towards online streaming services, Eisner did not give a timeline as to exactly when this will happen or whether all major sports league will do it at the same time.
It is important to note here that Eisner owns the soccer team Portsmouth which plays for the English third division league. Portsmouth games are digitally distributed all over the world. Eisner said that his experience with Portsmouth gave him the chance to see what he believe is a microcosm of what will happen with sports leagues and teams of the future.
While this is surely an interesting perspective, the future is still uncertain as there is a considerable number of sports fans that still watch their games through tradition means, i.e., broadcasts televisions and attending actual games.
